Poland’s central bank retained its key interest rate at a record low as widely expected by economists.
At the meeting held on July 5 and 6, the Monetary Policy Council of the National Bank of Poland decided to retain the key reference rate at a record low 1.50 percent.
Previously, the bank lowered the rate by 50 basis points in March last year.
The lombard rate was maintained at 2.50 percent and the deposit rate at 0.50 percent. The rediscount rate was held at 1.75 percent.
William Jackson, a senior emerging markets economist at Capital Economics, said the vote for ‘Brexit’ is likely to result in slightly weaker growth in Poland.
This, combined with subdued inflation and probable policy stimulus by the European Central Bank, is likely to prompt a rate cut in Poland. The economist pencilled in a 25 basis point cut, to 1.25 percent, this year.
The material has been provided by InstaForex Company – www.instaforex.com